Your TV support 1:1 pixel mapping?
Well I guess that's the trick... If you're comparing compressed 720p (the lowest form of HD at 1280x720 pixels) and a heavy compression algorithm.. you can be sure to get less 'pop'. I doubt cables will get you much difference.. but a Blu-Ray player with an HDMI connection will not only give you the best image you will see on this set-up, but should be superior to any 1080i broadcast.
You might also have a look at your settings, a good colour correction might be in the cards. I know from experience that download movies vary widely in colour, gamma, sound and have to be optimized for each, a bit of a pain. Either get a better player that allows for quick adjustment or buy Blu-Ray disks. At least with pixel mapping, you can be sure of pixel sharpness.
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